Charles E.Hodges II (Chuck)

Partner

(T) 1.404.581.8636

Chuck Hodges focuses his practice on federal tax controversies and litigation and assists U.S. taxpayers facing tax disputes around the world. He has been involved in more than 125 cases against the IRS in the U.S. Tax Court; U.S. Court of Federal Claims; U.S. District Courts in Georgia, South Carolina, Florida, Texas, Delaware, Mississippi, and Arizona; and Courts of Appeals for the Fifth, Sixth, Ninth, and Eleventh Circuits. Among his reported cases are Caracci v. Commissioner, 456 F.3d 444 (5th Cir. 2006) (intermediate sanctions/excise taxes) and Wright v. Commissioner, 809 F.3d 877 (6th Cir. 2016) (foreign currency contracts). By combining his tax law background with his master's degree in economics, Chuck also advises clients on transfer pricing issues and the global taxation of intellectual property.

For more than 20 years, Chuck has handled every stage of a tax controversy from examination (including the CAP program) through court proceedings and all alternative dispute resolution options, including post-IRS Appeals mediation. He represents Fortune 500 companies and their executives, privately held businesses, estates, high net worth individuals and their family offices, as well as exempt organizations.

Chuck is an international tax columnist for the Journal of Taxation and serves as chair of the Federal Bar Tax Section for Atlanta, secretary/treasurer of the Atlanta Bar Tax Section, and is a former chair of the Georgia Bar Tax Section. He is also a Fellow of the American College of Tax Counsel and a Fellow of the American College of Trusts & Estates Counsel (for tax controversies and litigation).

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Experience

The following represents experience acquired prior to joining Jones Day.

Represented in the Sixth Circuit Court of Appeals a taxpayer in a matter involving the interpretation of a "foreign currency contract" under section 1256.  Sixth Circuit found in favor of taxpayer.

Represented in U.S. District Court a transportation company in a jury trial involving the IRS' challenge of the per diem plan for reimbursing drivers for over-the-road travel expenses under section 62. The court issued directed verdict to the company at the conclusion of the trial with the IRS liable for attorneys' fees.

Represented a corporate taxpayer in examination by the IRS of transfer pricing issues associated with sale of business assets to an Irish company.

Represented employers with respect to IRS examinations of 401(k) and other types of retirement plans.

Represented in the U.S. Tax Court an insurance company against an IRS challenge of tax implications of alleged failed tax-deferred "A" merger under section 368 that resulted in a full concession by the IRS.

Represented in the U.S. Tax Court a corporation in connection with an IRS challenge of deductibility of premium payments made to a captive insurance company under section 831. The IRS conceded the case shortly before trial.

Represented in the Eleventh Circuit Court of Appeals a company seeking a reversal and remand from a district court decision granting the IRS motion for summary judgment on issue of whether corporate executives acted "reasonably" in establishing a per diem plan. The Eleventh Circuit reversed and remanded the case for trial, finding the company presented sufficient evidence to show a genuine dispute over reasonableness of executives' actions.

Defended in U.S. District Court a taxpayer against the IRS' motion to compel transactional tax attorney's notes and related files. The IRS motion to compel was denied based on attorney-client privilege and work product protection.

Represented in the U.S. Tax Court a corporation and subsidiaries in an IRS challenge of accumulated earnings, personal holding company status, medical reimbursement plan, repairs & maintenance versus capitalization issues, timing of deduction for disputed liabilities as accrual method taxpayer, and substantiation of expenses issues including net operating loss carryover (sections 162, 164, 168, & 172).

Represented in the Fifth Circuit Court of Appeals three home health care agencies and their owners in an action by the IRS that sought more than $250 million in excise taxes referred to as "intermediate sanctions" under section 4958 in relation to the transfer of assets and liabilities. The Fifth Circuit found in favor of the home health care agencies.

Represented in the U.S. Tax Court a credit financing company in a TEFRA proceeding in connection with an IRS challenge of the company's section 754 "step-up" in basis election and corresponding amortization deductions under sections 197, 754, & 743.

Represented in U.S. District Court the hedge fund/partnership and the TMP in a challenge by the IRS on the economic substance of investments and allocation of partnership income and deductions.

Represented in the U.S. Tax Court a large home builder against an IRS challenge of multiple conservation easements and other charitable contributions under section 170.

Represented in the U.S. Tax Court a national chartered bank in a case of first impression against an IRS challenge of the reporting of deductions by the bank of OREO costs (costs associated with property bank acquired in foreclosure — "other real estate owned"). The IRS fully conceded the case (IRC section 162).

Represented in U.S. District Court fund-of-funds in a two-week trial involving economic substance of multiple transactions and IRS imposition of accuracy-related penalties. The court found that penalties did not apply.

Represented a large corporate taxpayer on an IRS assertion that back-up withholding applied with regards to failure to properly file information returns.

Represented an employee stock ownership plan (ESOP) in examination by the IRS over qualification of the ESOP under section 401 and applicable regulations.

Represented in the U.S. Tax Court a taxpayer in an IRS challenge of the value of a historical figure's writings and related intellectual property rights.

Handled more than 10 U.S. Tax Court cases in connection with IRS challenges of the value of business interests for income, estate, gift, and excise tax purposes.

Represented in the U.S. Tax Court a large home building business in an IRS challenge of the current deductibility versus capitalization of certain expenses associated with a home building business under sections 162 and 263A.

Speaking Engagements

  • January 18, 2019
    The Impact of Data Security Laws on IRS Audits, ABA Section of Taxation 2019 Midyear Tax Meeting
  • January 18, 2019
    Navigating Cross-Border Discovery Issues and the GDPR, ABA Section of Taxation 2019 Midyear Tax Meeting
  • December 14, 2018
    What Tax Controversy Lawyers Should Know About The Tax Cuts and Jobs Act, 35th Annual Nat’l Institute on Criminal Tax Fraud & 8th Annual Nat’l Institute on Tax Controversy
  • May 11, 2018
    A Day in the Life of a Partnership Representative, ABA Tax Section, May Meeting
  • February 9, 2018
    Appealing a Tax Case: The Important Distinctions Between Trial & Appellate Strategies, ABA Tax Section Midyear Meeting
  • January 22, 2018
    The Odd Couple: What Companies Need to Know About IP & Tax Before Creating or Shifting IP Offshore, Jones Day CLE Academy
  • September 15, 2017
    Revenue Agent as a Witness, American Bar Association Tax & RPTE Sections Joint Fall CLE Meeting
  • July 8, 2017
    Dealing with the IRS: From Audit through Litigation, SC Bar Al Todd Estate Planning Seminar
  • May 12, 2017
    Best Practices in IRS Appeals, ABA Tax Section May Meeting
  • March 17, 2017
    The Prospects For Business Tax Reform, FBA Tax Atlanta and the Atlanta Bar Tax Section
  • March 11, 2017
    Estate & Gift Tax Audits: Practice Tips from a Trial Lawyer's Perspective, ACTEC Annual Meeting
  • March 3, 2017
    Recent Developments in Tax Litigation, 41st Annual Federal Bar Association Tax Law Conference
  • February 13, 2017
    Looking into the Crystal Ball: What You Need to Know About Tax Reform & the Future of the Affordable Care Act, Jones Day CLE Academy
  • November 16, 2016
    Tax Update in Light of the Recent Election, Georgia Society of CPAs Business & Industry Conference
  • November 4, 2016
    Ethical Considerations During all Three Phases of IRS Representation: Planning, Return Preparation, & Audit, 53rd Annual Heart of America Tax Institute
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